Singapore residual stocks slip 6% in October as distillate stocks build

Monthly average residual fuel oil stocks in Singapore dropped by 1.19 million barrels to 18.56 million barrels in October, according to Enterprise Singapore figures reported by ENGINE. That is a fall of 6% on September, even though net fuel oil imports rose 16% over the month.

Middle distillate stocks moved the other way, climbing 8% to 9.14 million barrels. The UAE, Brazil and Russia were the largest sources of fuel oil imports, while China, Malaysia and Bangladesh took most of the exports.

For buyers, the stock picture lines up with lead times:

• LSMGO: suppliers now suggest 9-11 days of notice, a tighter range than the 7-14 days quoted a week before.
• VLSFO: notice starts at around 13 days, and some suppliers advise more than three weeks.
• HSFO: around 10 days, but up to three weeks with some suppliers, little changed on the week.

If you have a Singapore call in the next two weeks and need fuel oil grades, lock in the stem now rather than waiting. Gasoil buyers have a little more room, but should still book well over a week ahead.